Dart Company Developed the Following Standard Costs for Its Product $\bullet$

question 199

Essay

Dart Company developed the following standard costs for its product for 2016: The company expected to work at the 120000 direct labor hours level of activity and produce 60000 units of product.
Actual results for 2016 were as follows:
$\bullet$ 56800 units of product were actually produced.
$\bullet$ Direct labor costs were $1092000 for 112000 direct labor hours actually worked.
$\bullet$ Actual direct materials purchased and used during the year cost $1108800 for 231000 pounds.
$\bullet$ Total actual manufacturing overhead costs were $680000.
Instructions
Compute the following variances for Dart Company for 2016 and indicate whether the variance is favorable or unfavorable.
1. Direct materials price variance.
2. Direct materials quantity variance.
3. Direct labor price variance.
4. Direct labor quantity variance.
5. Overhead controllable variance.
6. Overhead volume variance.

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Definitions:

Ebbinghaus

Ebbinghaus refers to Hermann Ebbinghaus, a psychologist known for his foundational work on memory and the forgetting curve.

Nonsense Syllables

Stimuli used in psychological experiments, consisting of consonant-vowel-consonant arrangements that do not form real words, to study memory and learning.

Ebbinghaus

refers to Hermann Ebbinghaus, a German psychologist known for his pioneering work in the study of memory, including the forgetting curve and the spacing effect.

Landmarks

Recognizable natural or artificial features that stand out from their surroundings and are often used for navigation.